Antigua’s Prime Minister Gaston Browne has voiced concerns over the potential economic fallout from a proposed United States levy on Chinese-built ships operating in US ports. The measure, introduced by the United States Trade Representative, would impose fines of up to US$1.5 million on China-made vessels or fleets that include Chinese-manufactured ships.
Speaking on his weekly radio program over the weekend, Browne revealed that his administration has been discussing the matter in cabinet meetings for several weeks, fearing a significant economic impact on the twin-island nation.
“An analysis has been done, and we have been advised that shipping a container could increase by about US$3,000 to US$4,000,” Browne explained. “If that happens, we are looking at an increase in prices of between eight and 10 per cent, which would be extremely inflationary, especially given the current elevated inflation rate of approximately 4.5 per cent. This could push inflation to as high as 12 or 14 per cent.”
The issue has also garnered attention at the regional level. Guyanese President Irfaan Ali noted that CARICOM leaders discussed the matter during a recent emergency virtual meeting with the Regional Private Sector Organisation.
“The US is an important partner, and the Regional Private Sector will be engaging in discussions with American officials, including the Secretary of State,” Ali stated. “Additionally, CARICOM’s Chair will seek a meeting with the White House to discuss these challenges and foster better understanding between the parties.”
Browne warned that the proposed levy could have a devastating effect on Antigua and Barbuda’s economy and consumers. He indicated that his government is considering a range of options in response, should the measure take effect.
He also revealed that CARICOM has asked Barbados’ Prime Minister Mia Mottley, the current chair of the 15-member regional bloc, to write to US President Donald Trump outlining the severe impact the move could have on the Caribbean, warning that it could “literally destabilize the region.”
“What we are asking for is a ‘carve-out’ under the Caribbean Basin Initiative (CBI),” Browne explained. “One of the CBI’s objectives is to ensure economic and social stability in the region. The United States should be concerned about its ‘third border’ to the south and mitigate any unintended consequences of its policies.”
While emphasizing that the region does not wish to be entangled in geopolitical disputes between the US and China, Browne stressed that where policies affect the Caribbean, Washington must be engaged. He reiterated that regional leaders believe CARICOM states should receive favorable consideration.
CARICOM leaders are scheduled to meet with US Secretary of State Marco Rubio in Jamaica on Wednesday to further discuss the issue.